* Wall St mostly up as consumer sentiment data tempers jobs
* World and European equities inch up
* Euro pares losses vs dollar; oil and bond prices slip
By Leah Schnurr
NEW YORK, Dec 7 Global shares rose modestly on
Friday after a surprisingly strong U.S. jobs report for November
was tempered by a drop in American consumer sentiment amid a
lack of progress in talks to avert the "fiscal cliff."
The dollar edged up, though the currency was off its highs
as investors parsed the details of the labor market report, one
of the most closely watched economic indicators.
U.S. non-farm payrolls added 146,000 jobs last month, data
showed, defying expectations of a sharp pullback related to
superstorm Sandy that hit the U.S. Northeast in late October.
Uncertainty over whether U.S. lawmakers will agree on a deal
to avert spending cuts and tax increases continued to keep
investors on edge. Any signs of how the talks are progressing
could cause more fluctuations in the markets.
"We're not as concerned as we were a few months ago because
of improvement like you can see in the employment number, but
there's such a wild card over the "(fiscal) cliff," said Bruce
McCain, chief investment strategist at Key Private Bank in
"There are such concerns about what could happen that
markets will be overhung until a resolution is more certain."
Republican House Speaker John Boehner accused President
Barack Obama of pushing the country toward the "fiscal cliff"
and wasting another week without progress in
"There's total uncertainty with what's going to transpire
here and abroad. Too many questions," said Warren West,
principal at Greentree Brokerage Services in Philadelphia.
Wall Street ended mostly higher, with gains capped after
data showed anxiety over pending higher taxes likely soured
consumers' attitudes in early December.
The Nasdaq fared worse than the other major indexes, weighed
down again by shares of Apple, off 2.6 percent to
$533.25. It was the worst week for the stock since May 2010.
The Dow Jones industrial average gained 81.09 points,
or 0.62 percent, to 13,155.13. The Standard & Poor's 500 Index
added 4.13 points, or 0.29 percent, to 1,418.07. The
Nasdaq Composite Index dropped 11.23 points, or 0.38
percent, to 2,978.04.
The FTSEurofirst 300 index of top European shares
ended up 0.07 percent at 1,132.69. The MSCI world equity index
inched up 0.14 percent to 334.52.
The dollar soared to session peaks immediately following the
jobs data, but the momentum faded through the day. The dollar
index was up 0.2 percent.
The euro fell to a session low of $1.2878 on Reuters
data, matching the low set on Nov. 28. It was last down at
$1.2925, having trimmed early losses, with traders citing a news
report that senior European Central Bank Executive Board members
opposed a rate cut backed by the majority at the ECB's policy
meeting earlier in the week.
"Whether this reduces the likelihood of a cut going forward,
the forex market perceives a more hawkish than dovish stance and
created significant short covering," said Andrew Wilkinson,
chief economic strategist at Miller Tabak & Co LLC in New York.
But the euro remained under pressure after Germany's central
bank cut its growth outlook and pointed to risks of a recession
as the three-year-old debt crisis takes its toll on the region's
The benchmark 10-year U.S. Treasury note fell
11/32 in price to yield 1.63 percent.
Oil futures prices slipped as investors worried about
Europe's economic problems and the uncertainty over U.S. budget
wrangling to avert the $600 billion in tax hikes and spending
Brent crude futures dipped 1 cent to settle at
$107.02 a barrel. U.S. January crude oil futures fell 33
cents to settle at $85.93 a barrel.
But gold prices rose from a one-month low after the healthy
U.S. jobs data did not change the view that the Federal Reserve
will keep using economic stimulus to bolster growth.
Spot gold inched up 0.2 percent to $1,702 an ounce,
bouncing back from a one-month low of $1,683.79.